Puffpaw is a "Vape to Quit Smoking & Earn" project that aims to help smokers quit through an enhanced vaping experience combined with financial incentives.
The project addresses issues in the vape industry by providing improved vaping experiences with natural e-liquids, and offering economic incentives through its native token, $VAPE. Users can earn more tokens for using e-liquids with lower nicotine content, encouraging a gradual transition to nicotine-free products.
Puffpaw aligns with the Decentralized Science (DeSci) narrative by allowing users to own and potentially monetize their smoking data. This data could be valuable for vape companies, healthcare providers, and AI companies for research and product development purposes.
Puffpaw has positioned itself as the first DePIN project within Berachain and has allocated 15% of its token supply to incentivize other validators.
Is there really a reason we like something? If I were to pick one project that I currently find the most intriguing and interesting, it would be Puffpaw. I’m neither a smoker nor a vape user, so why am I drawn to Puffpaw? I was curious myself, and this post is my attempt to reflect on and organize my thoughts on why I’m fond of Puffpaw. Before diving into the reasons, let’s start by looking into what Puffpaw is all about.
In short, Puffpaw is a "Vape to Quit Smoking & Earn" project. To put it more elaborately, Puffpaw is a project aimed at helping smokers reach their goal of quitting through an enhanced vaping experience coupled with financial incentives.
Puffpaw seeks to address the following issues within the existing vape industry:
The risks of vaping: While vaping may be less harmful than traditional smoking, excessive nicotine consumption can still be detrimental. Many existing vape products do not allow users to monitor how much nicotine they are consuming daily, leading to unintentional overuse. Additionally, e-liquids made from artificial chemical substances often pose health risks when inhaled. In short, while vaping technology might assist with quitting smoking and could be less harmful than cigarettes, improper use can lead to worse outcomes.
High margins for wholesalers: According to Puffpaw's whitepaper, wholesalers and distributors take about 80% of the profits in the existing vape industry. This phenomenon arises because regulations on underage tobacco use make it challenging to advertise on social media. Consequently, consumers pay higher prices for products, and vape companies struggle to establish direct connections with their customers.
Improved vaping experience: Through its proprietary Puffpaw Smart Vape (PSV), Puffpaw enables users to monitor and own their smoking habits and data. Additionally, Puffpaw plans to produce e-liquids made from natural ingredients like tea extracts. This approach aims to deliver a vaping experience that is 10x or more improved compared to existing products, allowing users to monitor their habits while using safer, more natural e-liquids.
Direct connection with consumers: Puffpaw reduces reliance on wholesalers and distributors by leveraging token incentives and marketing aimed at crypto-native users. This strategy enables Puffpaw to achieve a better profit structure while directly engaging with its target audience. The overlap between the personas of crypto users and vape users further strengthens this approach. Thanks to this strategy, Puffpaw expects to offer competitive pricing despite potentially higher production costs for its improved vaping experience.
Economic incentives through tokens: Puffpaw users earn the native token, $VAPE, for every puff they take. The main product is a nicotine-free e-liquid, and users earn more tokens for using e-liquids with lower nicotine content. This mechanism gradually encourages smokers to transition to nicotine-free products. Note that there is a daily cap on the maximum number of tokens a user can earn.
Source: X (@puffpaw_xyz)
Puff Pass: Puff Pass serves as a ticket to participate in the Puffpaw ecosystem. Initially, 10,000 Puff Passes will be sold, with potential for additional sales later. Purchasing a Puff Pass grants users access to the PSV device and e-liquid pods. Only Puff Pass holders can earn token rewards.
Puffpaw Smart Vape (PSV): The PSV is a proprietary vaping device developed by Puffpaw, enabling users to monitor and own their smoking data. This data is used by Puffpaw to issue token rewards. The PSV features an encrypted chip, tamper-proof codes to prevent Sybil attacks, and NFC for social functionality. The PSV connects to the Puffpaw mobile app via Bluetooth, so users must keep the device near their mobile device to monitor data and earn rewards.
E-liquid pods: The PSV is a closed pod vape, meaning users replace the pod once the liquid runs out rather than refilling it. Each pod includes encrypted chips and tamper-proof codes like the PSV. A single pod can provide around 1,000 puffs. While the main product will be nicotine-free pods made from tea extracts, nicotine-containing pods will also be available for current smokers transitioning to vaping.
When I first heard of Puffpaw, I questioned whether the team could execute such an ambitious idea, as it requires expertise in hardware, vaping, and crypto incentives.
However, the Puffpaw team has proven expertise in both the vape and crypto industries. Comprised of three university friends, the team sold over 76 million vapes last year to major companies like KT&G through OEM contracts and possesses in-house manufacturing capabilities for all components except the encrypted chip. Additionally, one of the founders, Reffo, has experience leading a SocialFi project in the Arweave ecosystem, providing ample experience in crypto. In conclusion, Puffpaw is a project that only a team with such dual expertise could undertake.
The first reason I like Puffpaw is that it connects crypto with physical experiences. When people think of crypto, they often picture something digital, detached from physical reality, like cyber money. While crypto is already integrated with the real world through examples like stablecoins and RWAs, these connections often remain abstract and don’t feel tangible.
Puffpaw bridges this gap. Users heat the e-liquid pod with each puff, inhale the vapor, and then see their rewards displayed in dollars on the PSV screen. Through the mobile app, users can monitor their smoking data and get introduced to crypto concepts like wallets, even if they aren’t familiar with them.
This physical onboarding approach isn’t entirely new. Conferences have given out small amounts of crypto to attendees, requiring them to set up wallets to claim their rewards. However, what sets Puffpaw apart is the frequency of interaction. Vaping is a daily habit for users, seamlessly integrated into their routines. Unlike one-time events or annual occurrences, Puffpaw’s frequent usage increases the likelihood of users incorporating crypto into their lives.
Reffo, Puffpaw’s co-founder, described Puffpaw as the equivalent of Stepn creating actual running shoes. Imagine if Stepn had combined an improved shoe design with economic incentives. Could that have reduced the number of users leaving when token prices fell? Might be. Although I love digital native experiences, there is intrinsic value in physical experiences that digital ones cannot replicate. (Stepn later partnered with Adidas to create a real shoe).
For the same reason, I also like Chipped, a brand that sells NFC-enabled press-on nails. By tapping these nails on someone’s phone, users can display preset social media profiles or websites. While currently focused on networking features, Chipped has immense potential for expansion, much like Puffpaw. Both projects integrate physical experiences into everyday life and link them with crypto.
The second reason I like Puffpaw is its alignment with the DeSci (Decentralized Science) narrative. I’ve long been a fan of the DeSci sector, believing it is still undervalued and worthy of attention. According to my DeSci stack definition, Puffpaw falls under the research resources and data layer.
As mentioned earlier, Puffpaw allows users to monitor and own data such as smoking frequency, duration, and nicotine intake. Although the exact implementation is unclear, based on this tweet, it seems user data will be stored in off-chain vaults, with access keys sold to third parties. Clique, a TEE-based network, might be used to generate on-chain proofs verifying data validity.
Who would buy this data? Two primary groups come to mind:
Vape companies: Since most vape companies rely on wholesalers and distributors, they struggle to acquire direct consumer insights. Puffpaw’s data could be invaluable for research and product development.
Healthcare and AI companies: These entities could use the data for research or model training purposes.
Monetizing smoking data is critical for Puffpaw’s long-term economic sustainability. Since the daily reward pool is fixed, individual token rewards will decrease as the user base grows. Ideally, users would remain loyal to the brand and its products, making token incentives less crucial. If not, the ability to monetize their accumulated data could offset reduced rewards.
While the importance of healthcare data is widely acknowledged, the idea of individuals owning and selling their data is still novel and may raise skepticism. Puffpaw’s success will depend on its ability to attract data buyers and make data management and monetization seamless for users.
For similar reasons, I also like Pulse, a project that enables users to collect and monetize health data such as fitness performance and sleep through wearable devices. Like Puffpaw, Pulse gathers data via physical devices. The difference is that while Pulse focuses on general health data, Puffpaw specializes in the niche of smoking data. Pulse is expected to use Monad, much like Puffpaw’s positioning within the Verachain ecosystem. It seems likely that Pulse will adopt a similar role within Monad, focusing on the monetization of health data.
The final reason I like Puffpaw is that it’s part of the Berachain ecosystem. Puffpaw initially considered multiple blockchains, including Berachain, Base, Solana, and Monad. Personally, I think choosing Berachain was the best decision.
While Puffpaw utilizes blockchain technology, its primary product is the vaping experience. Thus, selecting a chain wasn’t so much about technical advantages but about choosing a blockchain that could help bootstrap its initial user base. In this regard, Berachain surpasses other chains. By branding itself as the first DePIN project within the Berachain ecosystem, Puffpaw successfully garnered attention during its early stage. Meanwhile, Berachain benefits by showcasing a richer ecosystem through Puffpaw, creating a win-win relationship.
Berachain’s two strongest assets are liquidity and community. While Puffpaw’s main advantage lies in leveraging Berachain’s community, its liquidity cannot be ignored either. To capitalize on this, Puffpaw has joined Berachain as a validator and allocated 15% of its $VAPE token supply to bribe other validators. This strategy aims to deepen the liquidity pool for $BERA/$VAPE. While this won’t directly increase demand for Puffpaw’s services, it maximizes the advantages of Berachain’s Proof of Liquidity (PoL) mechanism.
In conclusion, I find Puffpaw interesting for its ability to provide physical experiences, its alignment with the DeSci narrative, and its position within the Berachain ecosystem. Whether these reasons resonate with you may vary. One thing I’d like to emphasize is that these reasons explain why I am intrigued by Puffpaw, but they aren’t necessarily reasons why Puffpaw will succeed. While crypto is one of several distinguishing factors Puffpaw uses to enhance its vaping experience, it’s not the core.
For Puffpaw to thrive, it must deliver a vaping experience that is 10x better than existing alternatives. Ultimately, reviews from early users will matter more than this analysis. Now, it’s Puffpaw’s turn to prove itself through its product.
After listing three reasons why I like Puffpaw, it feels incomplete to end the discussion here. Below are my thoughts on frequently asked questions about Puffpaw. Note that these are my opinions and do not necessarily reflect the views of the Puffpaw team.
Does Puffpaw promote smoking?
This is a major misconception. As mentioned earlier, Puffpaw is a project designed to encourage quitting smoking. By enabling users to monitor their habits and providing economic incentives, Puffpaw gradually guides existing smokers toward nicotine-free e-liquids.
Does Puffpaw promote vaping?
This is true. Puffpaw is a vaping brand, and it would be strange for a vaping brand to discourage vaping. However, I think what Puffpaw is claiming is that it provides a vaping experience 10x better than existing alternatives. Their stance seems to be, “People who want to vape will do so anyway. If that’s the case, Puffpaw offers a safer alternative.”
Why should non-smokers or non-vapers care?
Non-smoking Puff Pass holders can gift their PSV device and e-liquid pods to smokers. In doing so, both parties can share the token rewards. If I were to purchase a Puff Pass, I would gift the PSV and pods to a smoker friend, encouraging them to quit while also earning economic rewards.
Are the tokenomics sustainable?
Can’t tell now. The main utility of Puffpaw’s $VAPE token is for purchasing additional PSV devices or e-liquid pods. While these can also be purchased with regular credit cards, using the token gives discounts. Theoretically, if new users find the product appealing enough to continue using it, sustained demand for the token could be generated. Ultimately, this issue depends on whether Puffpaw can provide a superior vaping experience compared to its competitors. Only time will tell.
Can Puffpaw prevent Sybil attacks?
Puffpaw seems to have implemented various measures to prevent Sybil attacks. For instance, as mentioned earlier, PSV devices and e-liquid pods feature encrypted tamper-proof codes, ensuring that only products sold by Puffpaw can be used. Moreover, a single PSV can be paired with only one mobile device, and there is a daily cap on token rewards. If someone were to attempt an attack by purchasing 100 PSV devices, 100 mobile devices, and 1,000 e-liquid pods, they would already have spent a significant amount of money, meaning Puffpaw wouldn’t be at a major loss.
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